Resolution Supporting States' Rights to Regulate Gaming

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WHEREAS, the Interstate Wire Act of 1961 has been interpreted as preventing states from regulating all online gaming;

WHEREAS, the U.S. Department of Justice determined in 2011 that states have the authority to regulate most online gaming, with the exception of online sports betting, under the Wire Act;

WHEREAS, with the economy still in a recession, states are looking for new ways to raise revenue that have a minimal impact on taxpayers;

WHEREAS, many states have already moved forward with sanctioned online gaming as a method of raising revenue;

WHEREAS, members of Congress have begun drafting legislation to clarify the Wire Act and make it more restrictive than the Justice Department interpretation;

WHEREAS, states should determine whether online gaming should be legal, regulated and taxed in individual states, not the federal government;

NOW, THEREFORE BE IT RESOLVED, that The Council of State Government supports state sovereignty over online gaming regulation and opposes further federal regulation;

BE IT FURTHER RESOLVED, that a copy of this resolution be sent to appropriate members of Congress and executive officials.

Adopted this 3rd Day of December, 2012, at CSG’s 2012 National Conference in Austin, Texas.